paul: good morning. australia's markets have just open for trade. sophie: we are under one hour away from opens in japan and south korea. welcome to daybreak asia. our top stories this monday, china promises to step up the fight against ip theft in a bid to break the trade war logjam. it has been a major issue for u.s. negotiators. more pressure on westpac as the fallout from money laundering claims widen.

they are weighing new investigations. a record turnout in hong kong as pro-democracy looks set for big gains. it is the first opportunity for hong kongers to vote after months and months of violent protests. paul: let's get you across some breaking news on the bloomberg terminal. carl icahn is said to seek control of occidental's board. he plans to nominate 10 directors in an attempt to seize control of the u.s. oil and gas producer. this is according to people familiar with the matter. is said to be looking to seek control of occidental's board. we will bring you more details on that as we get them. for now, trading has begun here in australia. let's take a look at how we are tracking. currently higher by just over .1%.

we have a staggered open here in australia. stocks coming online in alphabetical order. we are currently in the a's. the one we are really looking forward to is westpac in the w's. this packet slipping about 7% in the last week on the back of this money laundering scandal. 4% off a seven-year low. we will keep an eye on that as things lumber along. new zealand has picked up from early losses. currently looking kind of flat. futures for the nikkei traded out of chicago higher by .5%. byures for the u.s. higher slightly. let's check in on the first word news with su keenan. su: we start in the u.k., as prime minister boris johnson has launched his party's election manifesto, pledging to reinforcing the national health service and cap future tax increases. the tories hold a double-digit lead in most opinion polls ahead of the december 12 vote, with

one analysis suggesting johnson will win a healthy parliamentary majority. dismissed the manifesto as a billionaire's dream. former new york mayor michael bloomberg is joining the crowded race for the white house, entering the democratic campaign with a mix of moderate policies and experience in business and government. bid77-year-old launched his by saying president trump is an active central threat to the u.s. and its values. he added that america cannot afford any more of what he terms the president's reckless and unethical actions. michael bloomberg is the founder and majority owner of bloomberg lp, the parent company of bloomberg news. prime minister benjamin netanyahu is to face a leadership challenge from within his own party. this, as a state prosecutor decides whether to let him form a government amid accusations of corruption and abuse of.

says theyper there will hold a primary election within six weeks. israel is still without a government after two inconclusive elections this year. against new protests fuel price hikes have erupted throughout iran, with videos on social media showing police firing live rounds into crowds of demonstrators in several towns. the government is slowly restoring the internet after a shut down and they immediately showed renewed unrest. government officials continue to blame foreign conspirators for the protests. global news 24 hours a day on air and on tic toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. thank you very much. china says it is going to take action against intellectual property theft to address a major sticking point in trade talks with the u.s.

our china correspondent tom mackenzie has an watching this. so what is china proposing here? tom: these were guidelines that were issued on sunday, and they include an example in terms of wanting to raise the level of penalties for intellectual property theft. they also say they are going to look to lower the threshold for punishment for those who do take part in intellectual property theft, and they want to make it easier for victims of ip theft to get and claim compensation. more broadly what we are hearing 22, they want to significantly reduce the number of incidences of intellectual property theft. a lot of western executives will say this comes down to local implementation. they are looking ahead to that. more broadly the context is china has been taking steps the last few years to ensure it has a stronger intellectual property

regime, and things have improved. if you talk to western executives, they say it is less of a priority for them than it was once because the systems have improved. and of course for china, it dovetails with their concerns. frankly the biggest victims are chinese private companies themselves. nonetheless, it is at the center of the trade negotiations between beijing and washington. certain officials here will be hoping it goes some way to moving the dial and getting them closer to this phase one initial deal. sophie: on those trade talks, where does that leave the position for either side, beijing and the u.s., given that we are creeping closer to that december 15 tariff deadline? tom: in terms of the broad strokes, we have an example of how xi jinping and trump are worlds apart. we heard from president trump in an interview on fox news over the weekend saying he does not like the word equality when.

it comes to trade deals. . that was after president xi says he wants an equitable deal. trump says everything is stacked in china's favor, i want ideal largely in favor of the u.s. broadly there seems to be a gap between the leaders. but we do know their principles and officials are still working towards an initial deal. we heard from the vice premier of china saying he was cautiously optimistic about the prospects of a deal. of course the other will -- the other headwind is the hong kong bill in support of democracy protesters in hong kong. president trump has not signed off on that yet, and he refused to say whether he would sign it in this foss interview. but he said it was a complicated matter in terms of the trade discussions. the unofficial deadline we are looking at is december 15, because that is where in theory additional tariffs could be put on chinese products. we are looking for both sides to make some progress before that unofficial deadline. sophie: tom mackenzie in

beijing. to hong kong, pro-democracy candidates are poised to win the majority of seats as voters have a chance to make comments. rosalind chin has latest. a record turnout? recordd: definitely a turnout for hong kong. more than 71%, which is unprecedented in any hong kong election so far. we did see that local media are reporting that 349 seats out of a total of 452 district council seats have been taken by the pro-democracy camp. forhis is a pretty big win that side and a message to carrie lam about what the sentiment and emotion is of the popular vote here in hong kong. the elections have been fairly low-key. they generally look at things like facilities, transportation and local areas. but this time around it is a

very highly politicized environment around these protests. there has been a huge wave of sentiment to, a, express how they feel, and b, a big mobilization effort from both the pro-democracy and pro-china camps to get voters out and vote. and also the fact that every single one of these 452 seats were contested, whereas in the past some were uncontested. a big awakening in terms of the political thought and sentiment about what is going on in hong kong right now. is one of of course the first monday mornings where hong kong has not woken up to a really big mess on the streets. people have taken this opportunity to get out and exercise their democratic rights. what does this mean for carrie lam, the chief executive? last few days the

have been largely peaceful here in hong kong. because both sides have want of these elections to go ahead. both sides have called for there to not be protests and for things to remain calm, and i has essentially happened. what the result means if the pro-democrats win by a large number, which looks like it will happen at this stage, would not all the results in -- essentially it has two implications. one is on the election committee which will eventually vote for the chief executive. at this point in time the committee is reporting that the pro-democracy camp could take all the seats, 117, which go into that 1200 member committee that chooses the chief executive. the other side is a legislative council. the district council, the democrats could take up five of

those seats if the results go their way. that is another election that will happen next year. so there are knocked down effects for protesters higher up in the pluto system in hong kong. these district elections, lowly as they were seen in the past, and loki, but they do have impact on how things may be done later on. paul: rosalind chin in hong kong, thank you so much for joining us. we will have more on the district elections as a results come in throughout the morning. we are going to be joined as and by german james tien audrey eu. just want to check in on what is happening in australia. higher by 4.%. westpac currently off 1.5%, extending the declines saw last week. westpac of course broiled in a scandal, 23 million separate transactions and violations of money laundering laws over six

years. cominge weekend the ceo under political pressure from the government, the treasurer calling for accountability from westpac. isll to come, will placard -- hewlett-packard is ready to reject xerox after turning down a hostile takeover bid already. we will have the latest there. exclusiveter on, our interview with robert, as the hotel operator looks to push into china. ♪

across let's get you some numbers in sydney. westpac is sliding for a fourth straight session to a december 2018 low as the bank sees up to 80,000,080 dollars in fiscal 2020 costs related to a lawsuit.

healy is under pressure after its earnings slid over 30%. sorry, that is new farm. dropping more than 13% after a trading update. earnings for the first quarter. healy is under pressure. pressure. under these are some movers early in the session. paul: thank you. despite all that red you just saw, we have a broader market up by .4%. aussie equities hovering near record highs. it will keep -- strategist eleanor creagh joins us now.

we have equities in australia and other parts of the world at record highs. you say we might see continued upside, but what is it going to take? eleanor: i think that is the key question. if we don't have a catalyst for significant upside push, i think we have catalysts in place for a slow grind higher. ofhave some feelings uncertainties when it comes to potentially the trade war, when it comes to other geopolitical uncertainties like brexit. of course we have an increase in central bank balance sheets again which is pumping equity into the market, which as we all know usually tends to see equities on the rise. but if we take a step back and look at central bank balance sheets on aggregate over the next 12 months and how much they are predicted to increase, it is around less than 40% of the peak balance sheet rise. so and that sense it is not enough of a liquidy injection to see upside for the markets. we don't have a clear view of

global growth yet either. we have a strong u.s. dollar. until we see the u.s. dollar weaken it will see -- it will be hard for this to really continue. we expectill mean this treading water scenario to continue. paul: and the risk casting a shadow over all of it is trade. we have that artificial deadline on december 15 for more tariffs. the markets are getting very optimistic. eleanor: certainly the markets are incredibly optimistic when it comes to the trade deal. the markets are pretty much priced for a deal to go ahead. that may be the case but we may see that pushed out to 2020. there seems to be an impetus on both sides to get something done and reach a small win. i think there is enough low hanging fruit to see that come to fruition. we could see china make concessions on intellectual property, we saw that this morning. also other purchases.

the key point will be the rolling back of tariffs. china has maintained that is crucial for them even signing this partial deal, is seeing the u.s. agreed to a rollback of tariffs. concedeed to see china enough to satisfy the u.s. trade negotiators into signing a partial deal. but i think even if we see that pushed out to 2020, depending on the rhetoric that comes with it, if we see this constant pumping of the equity market from president trump with this deal is close narrative, we can continue to see equities march slowly higher. sophie: optimists have been outpacing pessimists this month given the trajectory of global growth and where they anticipate this going. this chart highlights recession probabilities across major markets. germany narrowly avoided a recession this year. this wednesday we will have an abundance of u.s. data, including a gdp number. do you expect we are out of the

woods or our markets too complacent? eleanor: we do not think we are out of the woods yet. i think we have seen a slight rebound in manufacturing and that has fueled this reflection area optimism across equity markets. but if you dig deeper and you look at the leading indicators, that actually points the fact that maybe we are not quite out of the woods yet when it comes to global growth and also when it comes to manufacturing. if we look at the pmi's released on friday, we have seen a lid of a -- a little of the balancing. and germany and france we have seen that bill over into the services sector a little bit, which is actually something of greater concern because it is the services sector where the bulk of employment sits and that is what we do not want to see happening. if we start to see the manufacturing sector in the u.s. lead the services sector lower that is where we will run into problems.

given we have had such a protracted slump in manufacturing i would say it is a matter of time before we can ben how long we immune to the manufacturing slump, particularly given where we are in the labor market and profit cycle. if we look at employment over the coming months, it looks like in the u.s. particularly that jobs growth is poised to slow. and that really means this strong consumer narrative that to date has held up the u.s. could be into some trouble. that potentially is quite interesting if we start to look out towards year's meetings and the pricing of january. it looks potentially missed at this moment in time, given that we have six weeks worth of data until that meeting. we are sitting at around 5% probability. potentially we could see that pick up if we see more deterioration in economic conditions over the coming months. sophie: and how much more will the fed have to assess its

position? we are seeing weakness across the u.s. economy. the consumer narrative coming under pressure. what else should be the fed be considering? eleanor: i think when it comes to the fed, the key dynamic is really going to be the strong consumer and this bleed from the manufacturing sector into the services sector and the labor market. we have seen the fed deliver on rate cuts this year. in thisave seen the fed pause mode now and potentially they are aiming for this soft landing territory and keeping economic expansion alive. that is really going to be dependent on propping up the u.s. consumer. if we do start to see the labor market deteriorated in the coming months, which as it is cyclically in tune to do so, we will have to see the fed stepped in again in the coming months and ease further. paul: eleanor creagh, thank you so much for joining us today.

we have plenty more to come. stay with us. this is bloomberg. ♪ ♪

paul: i am paul allen in sydney. sophie: and i am sophie kamaruddin in hong kong. now the latest business flash headlines. tesla is claiming almost 190,000 orders despite a disastrous launch event. 000 peoplesaid 187, have cited interest. tesla aims to start full aoduction in late 2021, with more powerful model do a year later. paul: softbank is said to be pursuing its offer for wework including almost $1 billion of shares owned by the startup's founder. the coming days will bring bids for as much as $3 billion.

shares are based on the already announced terms of $19 apiece. there have been no talks about changing the terms of the offer. sophie: pressure continues to build on westpac with a potential investigation are the banking regulators that would have the power to disqualify directors and executives. westpac is accused of widespread breaches of money laundering and terrorism finance laws, and failing to spot transactions linked to child abuse. they expect more than $50 million u.s. with costs associated with the investigation. now, to a bloomberg scoop carl icahn said to be moving to seize control of u.s. oil and gas producer occidental. su joins us with more. su: billionaire investor icahn going to shake things up for sure. he is attempting to seek control of occidental's board according to people close to the matter,

by nominating a slate of 10 directors. the billionaire investor owns a stake and plans to make a move before the november 29 deadline for nominations. icahn has been a vocal critic of occidental after its takeover. if you look at the big picture chart, shares are down close to 44% year to date. icahn attacked the lack of shareholder vote and a price of $10 billion in financing of the acquisition, having to turn to warren to get the deal done. more to come on that front for sure. sophie: and plenty of news around the merger front certainly. su: it will be a very busy merger monday. news on one merger that appears to be hitting a hurdle, another taking place. let's first look at what is going on with xerox and hp. not answer questions

that a.p. asked and it is raising questions. quote, concerns about your business and prospects. did not only earlier rejected it not only rejected an offer, but rejected that they could not open their books. again, there was a deal made, but sunday hp rejected it, and therefore that does not advance. and another important deal on monday. sophie: up next, bloomberg's exclusive. the trade deal, hong kong, and reform of the wto. this is bloomberg. ♪ is bloomberg. ♪ whether you're out here on lte.

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su: this is daybreak asia. u.k. prime minister boris johnson has launched an election manifesto pledging to reinforce the national health service and cap future tax increases. he holds a double-digit lead ahead of the december 12 vote with one analysis suggesting johnson will win a healthy lead from the parliament. labour dismissed the tory manifesto is a billionaire stream. new protests against fuel price increases have erupted across iran with videos on social media showing police firing live rounds of the crowd of demonstrators. the government is slowly

restoring the internet after a week's shutdown and video messages immediately showed renewed unrest. government officials continue to blame exiles and foreign conspirators for the protests. the latest in hong kong now. pro-democracy candidates have taken an early lead in hong kong's district council elections, according to local media reports. rt hk says the early count suggest "a landslide win" a record number of voters cast ballots sunday. the first opportunity to comment after months of protests about greater democracy. and chinese state media says that u.s. is "the biggest is stabilizing element in hong kong." the official news agency says that american politicians risk pushing the city into a more dangerous -- as theyu use what they call the hong kong card to contain china's growth.

it comes as president trump is ll that into a law a bi would require annual reviews of hong kong special trading status. global news 24 hours a day on air, at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. sophie: let's stay on china. beijing is signaling an increase willingness to strike an initial trade deal. one senior policy maker tells us the main demand continues to be that tariffs are rolled back. tom? this was an exclusive interview we had with china's former vice commerce minister at the new economy forum on friday. we did talk about the trade talks and the need to see the tariffs rolled back. we discussed the phases two and

three of the part of the d and whether or not china is prepared to put its industry policy and state subsidies on the table for negotiations. take a listen to what the former vice commerce minister had to say in this exclusive interview. >> you have -- trade war began with the addition tariffs. i think we should remove all additional tariffs in the phase deal. >> if president trump signs off on the bill to support hong kong's protesters, would that de rail the trade talks or can the two sides look through that? >> we hope the u.s. will not intervene in china's domestic affairs with regards to hong kong. we hope president trump does not doesn't bill as it reflects the reality in hong kong and it is no good for the future of hong kong and its people.

tom: let's assume we get a phase one trade deal. the focus switches to phases two and three. is china prepared to make changes to its industrial policy and to cut back on state subsidies as part of those negotiations? >>9 paul i think it will happen. phasek in phase two and three china will keep accelerating its opening up. i think this is possible. we hope we will have new opening up measures on protecting intellectual property, optimizing the investment environment, as well as foreign investment law and market access. tom: here at the new economy for we heard from charlene who helped to negotiate china's entry into the wto. she said that china's system of state capitalism, the role of the party, intellectual property state subsidies

for chinese companies, those issues remain problems. she's right that those are still major issues for china. >> she is my good friend. i think wto needs reforms. the major problem of wto is that it can't keep pace with the times. we want to reform wto. ipcourse in terms of protection and subsidy for chinese state owned companies, i think we should remove any unreasonable subsidies and we conduct market reforms and promote market economies. tom: are we looking at below 6% growth in 2020 for china? i personally believe in dp will next year's g be better than this year.

china's economy will be better than this year. china's gdp growth will be slow for the first half of the, but it will grow for the second half of the year. tom: a couple of key takeaways. one is he says state subsidies will be on the table if we get to face two part of this trade deal because there has been a lot of skepticism from china watchers as to whether or not that meat of these negotiations in terms of industrial subsidies will be something that china is ready to was lit -- wrestle with. in terms of the growth picture when i asked him about whether or not we are looking at sub 6%, the likes of ubs have cut their forecast to 5.8%. he says he thinks growth 20 is going to be better than 2019. the first half is going to be weak. the second half will be pretty strong. a couple of takeaways from china's former vice minister wang shouwen speaking at the new

commerce forum on friday in beijing. paul: tom mackenzie in beijing. up-to-dateyou with what is happening in australia on the markets. we have the border asx up better than half of 1%. ollar stuck between 67 and 69 u.s. it has been there from a. even though we had some encouraging signs on the u.s.- china trade talks. the 10-year at 109. we have a few movers. group.y touch companytially lay-by after after pay saying it is going to act on all recommendations which were given to the independent audit. the biggest losers is new farm australia. a company that manufactures a range of agricultural -- off by

.%, after lowering its guidance for the first half and describing a difficult trading conditions heading into 2020. of course westpac. shares lowere again. extending last week's losses off of 1.4% as it deals with the fallout of six years and 23 million separate violations of money laundering laws. westech setting aside 80 million australian dollars to deal with it. the ceo remains in his job but is under pressure from the government the treasurer singer there needs to be some accountability of westpac --. plenty more to come on "daybreak: asia" the latest from the desert election and hong kong's. results coming in throughout the morning. we be joined by the hong kong liberal honorary chairman. this is bloomberg. ♪

asia.this is daybreak i'm paul allen in sydney. sophie: i'm sophie in hong kong. the city has witnessed a record turnout is voters have their first opportunity to cast a view on the increasingly violent street protests and the government's handling of the issue. joining us now is james tien honorary chairman of the hong kong liberal party and a former member of -- thank you for joining us after the sunday polls which are widely being seen as a referendum on the government. the pro-democracy camp is 118 district of council which should give them a foothold on the election committee for the chief executive. what position does carrie lam and her cabinet find themselves in now? >> right now probably does not make any difference, but during the next election then the 1200

electoral members get to vote. will go to7 independents. we need 600 to win. carrie last time had 777. you take that away and you were down to 650 which is barely over the majority figure. difficult very -- for government to managea a win. it's more difficult to govern right now. sophie: hong kong has become deeply polarized. can lawmakers on both sides find common ground to try -- for a future of the city reaching a political solution for the ongoing crisis? >> i'm the pro-establishment camp but i have to say in recent years, because of the slim majority the government has in some of the unpopular policies they want to make, for example, that extradition bill, where so many people object, government decided to go ahead. with two million protesters and

they are saying we are going to do it anyway. in the last few months, all of the riots, the protest we have seen it hopefully i think after this election, they will go away. that is a blessing in disguise. the universities on the streets. or at the airport. i really expect this to go away. people figure out if i can get back to the council and initically, i will not like previous years just vote for whatever government wants. sophie: we have seen business sentiment come under pressure. pulling up a chart to demonstrate that for our viewers. what is your assessment of how perhaps the whole, why it may not make a big difference now, how can that boost this picture? >> i think the protesters will slow down. and if the protest doesn't urge the group to go the way they

have been doing. they can go to work. the disruption to our -- that would also subside. if that be the case, i think business will be back to normal. our tourism will be back, our retail trade, a restaurant, everything will be for the better. if that happens during the pre- christmas season and january just before the chinese new year, then i think business immunity really looks forward to the stability bringing back the prosperity part. paul: your optimism is encouraging. but realistically, none of the protesters demand have been met. why, to play devil's advocate, will they stop protesting? >> that is a very good question. a key question is on the commission's inquiry. i think the government now will probably have to seriously think about it. government has also been saying the riots and protests dies down, they will consider

conducting this commercial in cory. inquiry.he i think the violent protests will die down. by then in january government will have no excuse not to have the commissional in quiry. and that is a key demand of the people want. now, the second part about democratic suffrage, the government has really think twice about this. because right now government doesn't, already does not have a majority of the district council. it used to be out of the 450 seats, 300 pro-government and 150 on the opposition side. now it is the reverse. you got like 350 seats. the pro-establishment side only got about 100. as that goes into next year september, that is an election and that is where it really counts. if we lose the majority of 76,

then governments up we cannot govern. leavewhere does this carrie lam the chief executive because you call for her resignation back in october? how do you see her position now heading into those elections next year? >> i think it will be even weaker. if you look at the current election last night. most of the candidates that lost, it's not because they did not do a good job in their district. it's because they support the government on the extradition bill and against the commission inquiry. they are saying no is no. they did not even given the reason. they have nothing to say. i think this is term to tell -- good to tell beijing that the hong kong people have wakened up to the sense that one country, two systems, a degree of autonomy, the two system -- that 70% of our voters voted. that's like double. in the past, in the district

council, the voting was 35%. this time over 70% voted. pan than 70% voted for the democrats which is the opposition. whoever is governing, be it carrie lam or beijing to look to ask of the governors of hong kong will have second thoughts about meeting some of the wishes and aspirations of our people which is not that outrageous. any roomill bthere be for compromise if there are cannotal solutions that be cannot be found, for example, the liberal party had before this idea of legco looking at the protests in terms of an inquiry? actually more powerful than

what we are asking government to do which is their own inquiry. government should be willing to let the police investigate themselves. and people are saying that is fair.o if we want to have a thorough investigation, maybe government needs an independent commission inquiry headed by a retired judge with the ability -- to represent the people of hong kong. in the past, we had such commission inquiries on a lot of controversial subjects. sophie: is hong kong's judicial independence at risk? >> not yet. firstly, the judges have their own sort of promotion system. it's not the chief executive can simply appoint somebody or beijing can simply say that i want you to be the chief judge, and therefore. for example, our high court just

real that mass law is unconstitutional. so i think the good thing is that right now the judicial independence iss still 100% here. 30 years down the road, no one can tell. this is one one aspect that people are worried about. to make sure the judicial system does not get eroded year after year. paul: yes, but that disclaimer that you made up till now, that is a critical one. as you point out the high court exercised is judicial independence overturn -- over turned the face mask ban. wasrhaps what sophie getting to is that china questions that decision by the court. do you find that concerning? >> well, the hong kong high court is not actually questioning the mask law.

they are questioning the way you use it. because government did not pass this law by the legislative council. normally, like your congress you have to pass the law to the commerce but this time government did it with executive power, which we do not think is the right way. the high court is saying that unless you use the state of emergency power in that law, if say hong kong is not in the state of emergency, you should not use that emergency action, which is just by the executive passing that law. i think the government really has a think twice about that. of course china will have the ultimate say. on the standing committee. if they given interpretation of the law saying this is not contravening the basic law. then it's a different issue but that probably will have to wait. sophie: thank you so much for joining us in the wake of the sunday elections in hong kong. james tien, honorary chairman of the hong kong liberal party. more on those elections later.

to the party's foundries leader -- founding leader joins us. westpac shares are falling as the lender faces more pressure. this is bloomberg. ♪

paul: this is "daybreak: asia" i'm paul allen in sydney. sophie: a quick look at the latest business flash headlines. to meethn is planning 10 potential directors an attempt to seize control of occidental. he'll move before friday. icahn has been a vocal critic after a $37 billion takeover of anadarko.

saudi aramco has taken -- aimed at dubai for its first investor meeting outside the kingdom. the presentations were by invitation only. with only lukewarm interest from foreigners. the range of top international banks have struggled to raise support from investors outside saudi arabia. sophie: set to be opening a store on a chinese e-commerce platform later monday. it will be a step back into the mainland for amazon after it closed its own platform in amazon. shares suffered the biggest drop since listing. paul: the embattled leadership of westpac is in the size of a regulators amid allegations that it breached the mining laundering laws 23 million

times. emily has been watching development. 23 million breaches over a six year period. can you give us a flavor of what some of those breaches involved? emily: the first thing is international money transfers. regulators in australia want to know about them because they want to -- check the potential for money to be transferred to countries where it is not meant to be, such as those with sanctions as well is looking for money laundering, etc. a huge number of these transactions that were made wasg westpac platforms simply not reported to the regulator. that is a problem. now, but potentially the more explosive allegations from a domestic perspective are that westpac also failed to adequately monitor for child expectation risks. the regular header have warned the banks of potential for

payments to use for child explications. frequent payments to countries in south asia where the -- the payments has no family connection. now it's identified 12 customers where these risks aren't adequately mitigated. in one case there were payments made from australia to someone who's latest -- it was later found was guilty of child expectation. had it has bank has faced costs related to the lawsuit and other regulators are getting into the action. emily: yes. so, late on sunday westpac announced its immediate action plan. this includes closing a number of products that have been used to make these international transfers and a raft of investigations, etc, etc. this morning up with the cost of

this, its immediate response and 80 million. that is completely separate from any potential fine it may have to pay to settle the allegations. you're right. allegations this size. all the other nations financial regulators are starting to look regulator which the treasurer late last night said will be looking at executive accountability arrangements and we also understand the securities regulator is going to assess for any breaches. it might require to launch its own investigation. the pressure is mounting. sophie: thank you so much. let's get a quick check on how asian markets are faring. aussie shares extending friday's gains. gains.

paul: good morning. welcome to "daybreak: asia." major markets have just opened for trade. top stories this monday. a record turnout in hong kong's council election as pro-democracy candidates are set for big gains in the first vote since street protests began. trying to step up the fight against -- in a bid to break the trade war logjam.

and -- strengthens as boris johnson launches a manifesto and says brexit will happen and vows to unlock brings potential. still very much on the table and checking into how it's faring in tokyo. the topix gaining ground after we saw the rally cooling last week. but goldman is expecting a continue rebound for japanese stocks. the nikkei 225 rising to 25,000 points by the end of 2020. the yen holding steady. checking in on the kospi. .07%>spi up while aussie shares extended again. treasury futures open lower. let's check in on cash treasury's early in the asian session. we do have the 10-year yield

holding steady, stabilizing. is verye aussie dollar much stuck in a no range while the offshore yuan is below 704. a check on that risk barometer as we kick off trade this monday. su? su: thank you. we start with china which is raises penalties on the theft of intellectual property. washington wants beijing to crackdown on i.t. theft and stop forcing american companies to handle the commercial secrets as a condition of doing business on the mainland. china says it aims to reduce violations by the year 2022. and plans to make it easier for victims to win compensation. . former new york mayor michael bloomberg is joining the crowded race for the white house. netering -- entering the democratic campaign. bid77-year-old launched his

by saying president trump is an existential threat to the u.s. he added that america cannot afford any more of what he terms the president's unethical actions. michael bloomberg is the founder and majority owner of bloomberg lp, the parent company of bloomberg news. to iran. new protest they are against fuel price hikes have erupted with videos on social media liveng police firing rounds into crowds of demonstrators in several towns. government is slowly restoring the internet after a week or shut down video message immediately shows renewed unrest. government officials contend to blame exiles and foreign conspirators for the protests. sumatran rhinoceros has become extinct. after the last of its species

died of cancer on saturday while living in captivity. the rhino is the small as of the five species and once roamed across asia, but it's numbers have shrunk due to poaching. it's estimated their only 80 animals left. mostly living in the wild in indonesia. global news 24 hours a day on air, at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. this is bloomberg. sophie: to win the majority of seats in hong kong's district election as voters have the first chance to make an official comment on the government street protests. our reporter has the very latest. we saw a record turnout on sunday. huge turnout. more than 71%.

and local media are reporting that the pro-democracy have taken 351 seats out of a total of 452. waiting for final numbers to come out later in the day but right now it does look like a huge gain for the pro-democracy camp. mainbrooaadly there are two camps. there is a pro-democracy camp or the pro-establishment or pro-china and a handful in between which are the independents. suusually the pro-establishing camp win. dozens of the seas are not even contested. a lot of times people do not contest. this time, huge mobilization force from both sides to make sure the candidates -- compete for every single seat for the first time. really this vote has shown that the people have spoken. a guest early on the show did say that these quotes with -- isn't about whether these cousi

ncilors are good at their job. this election is a voice about the government, their handling of what has been going on since sides,tests on both that both the pro-democracy side and also the proestablishment side as well. really a question coming up about political reforms as the ofple vote about the lack autonomy or the encouragement of hong kong's autonomy. these issues at what the local district elections was really about. the: so that's what election was really about, as you say and voters have had their say on that. but is it going to change the bigger picture you described? what happened next? panlin: let's say that democrats win a huge majority in these elections. the bigger question is what can carrie lam do?

what will the response be but also what will depend democrats do? -- the pan democrats do? there has been in fighting among themselves. how will they mobilize themselves and organize themselves to make the most use of the leverage they may gain. politically speaking, these elections may have a knock on effect to other areas. legislative the council elections that will take place in 2020. there are 70 seats. and district counselors can make up five of those seats. and they are elected by the general population. the next level is the election committee, 1200 people that vote for the chief executive themselves. seatsat, from that 117 are taken by district counselors. nominated for the 452 district counselors around hong kong. areas will be impacted by the results of these district council elections but

the actual impact, how far they can actually make an impact on what happens really depends on the numbers that they end up with overall. sophie: rosalind chin on the ground in hong kong. joining us for more is a portfolio manager for jpmorgan asset management. given what we have seen over the course of several months in hong kong has been fairly resulting walgreen company has falling into recession. the chart shows you that valuation for stocks has come under pressure. >> i think hong kong stocks are definitely trading at the chea per end. in the long-term they are attractive. but ultimately we need to see an improvement in the economy for people to start to regain their confidence to buy stocks. that's probably going to take a bit of time. for now hong kong stocks, the domestic stocks, may still be on

a relatively basic a little bit of a lagger. but over time they will have catch up moment. sophie: we see increasing correlations for stocks in the cities. how are you going to navigate that? >> there is, when we look at the hang seng. we need to differentiate between the china index companies. the index is heavily skewed towards china-based companies. the 1/3 which is hong kong in which you have banks that are stable businesses. the market is differentiated between the hong kong specific listed company, some of the smaller caps, more towards a more retail, that are more impacted by what we have seen on the streets compared to his sort of the broader representatives of the markets. so, i think investors will still navigate between those two until we start to get some clearer signs of a cyclical improvement. paul: one of the issues we were discussing a minute ago with an earlier guest was the rule of

law. we, of course, had the hong kong high court overturning that ban on face mask. than we had china attacking the decision from the high court. the rule of law is one of the most appealing things about hong kong. do you feel that might be at risk? leon: no. we're still very much of the view that hong kong remains in a medium-term a pretty stable place. systems is, two something that is in everybody's vested interest to maintain. i, we have no specific, think, concerns about the general direction of where hong kong is and where it's going. the current tension needs to be result peacefully, but i think structurally we are very comfortable and remained fairly positive in the medium-term on hong kong. paul: of course one of the economyeighing on the is weekend after weekend after weekend of street protests that are causing tremendous

disruptions. considering that the demands of the protests have not been met and does not look as if they will be met anytime soon, when is this going to end? are you prepared to be patient i think that is actually required. ultimately there is a gulf of where the government is. will be athere compromise in some kind of coming together. hollande that takes remains uncertain. -- how long that takes remains uncertain. the market has priced in a cyclical slump. meaning that the market does not look at his informant-- a permanent state of affairs. it looks as something that will be overcome. i think the market is quite open-minded as to how long it may take. multiply for stocks have to catch up. you need to see the green shoots of this kind of resolution at that moment that is hard to see. so we wait. sophie: we have some bargain

hunters coming in given that the valuations have suppressed. they can see by the chart on the terminal. you are sticking with us for more after this for plenty more in district elections with founding leader audrey eu and fernando chung joining us later. doors johnson launches his manifesto and promises to end the post brexit drama. s toughhina promise new measures on intellectual property theft. this is bloomberg/. ♪

paul: i am paul allen in sydney. sophie: i'm sophie in hong kong. you are watching "daybreak: asia" china says it will take action against intellectual property draft to addressed a major sticking point over trade talks

with the u.s. john, what should we read into the timing of the i.t. move? john: well, we do have a trade deal that looks like it is getting closer to fruition. vice premier of china saying he is cautiously optimistic last week. we had president donald trump say on friday we were very close. forced technology transfer have been ua key part of the u.s. complaint. this could pave the way for subbing to be signed between the two presidents. china is increasingly developing a lot of its own technology. so, it has become beneficial for china to protect that on its own. paul: so, how much are these rules really going to change conditions on the ground for companies doing business in

china? john: we don't have the specific detail about how these rules will be enforced. ip,if somebody does violate how much of a punishment, how severe that punishment might be. we do not have that yet. clearer picture early into 2020, i think companies will have a better feel for that. the attitude is very clear that china wants to try to -- wants to try to address the concerns to get something done on trade. paul: all right. thanks so much for joining us there. get you across the news were getting from the upcoming alibaba listing in hong kong. alibaba saying the retail portion of its share sale in hong kong is 42.4 times covered. a lot of strong interest in that, the share sale expected to raise about $11 billion.

we'll keep a close eye on that, listening for when it happens. alibaba saying the retail portion of the share sale 42.4 times covered. still with us we have the portfolio manager for multi-asset solutions at j.p. morgan asset. management we were hearing from john there about some conciliatory tone being set by china when it comes to the trade dispute with the u.s. are these moves on ip going to be enough to sweeten the deal? leon: look, we do not have the inside -- exact we how the deal is going to formally. phase one deal. i think there will be a few mini deals after that. i think the market expects it. ultimately it is less about what is in that first round deal and much more about the fact that

the market does not want to see new rounds of tariffs coming through december and this was an opportunity to roll back some of the tariffs they have already introduced, and that would be so much better. from the market perspective in our perspective as well we do anticipate a deal between china and u.s. it is in the regional interests and what the content of the deal would be remains to be seen, but the key is not so much about the deal but not having further tariffs. paul: and another key is imagine, the market expects it. but we have been in this situation before, where looks like the ink was about to be put on the paper and everything went south. do you think there is a risk that we could have a similar unexpected consequence again? leon: that risk indeed always is there. i agree with you. expectation was very much that a deal was going to be announced, and then that never happened. so, yes, that risk is there. if that were to come to pass, markets will struggle. aere could be quite a bit of

correction is consummated between the u.s. and china. sophie: with that potential outcome, we have seen a complacency in markets. just pulling up the chart demonstrating how we have currencies, bonds that price swings are really not, seeing much there. muted volatility continue to 2020? leon: if you look at volatility, volatility has been -- there have been spikes here and there but volatility is low. yet, if you look at an index of policy uncertainty which is put out by a couple of stanford academics, that uncertainty index is at a record high. there is a complete decoupling where uncertainty is an volatility is. the reason why market volatility can look through the uncertainty is that markets are making a bet that there are still no recession risk, or rather but there is no recession-based -- out into 2020.

as long as that is true, whilst the economic growth remains muted next year, recession is a lower probability again. volatility may well remain fairly subdued. sophie: when it comes to where you see pockets of opportunity in asia, for example, we have seen the kospi rally. valuations picking up there. you are liking japan. eon: we are recently -- reasonably constructive on the rest of asia. we have had a tilt toward a more defensive, more quality games. in countries as well as sectors but the past five months, as the global economy starts to stabilize, particularly the industrial manufacturing part of the economy is starting to plateau, we are starting to move towards a bit more cyclicality. so, japan as a reflection of that. we are positive and japan and

there are some other structural catalysts in terms of a pretty reasonable package. bettering a bit more improved performance out of the cost be -- the kospi is not a surprised. sophie: what you see about u.s. stocks? are they looking pricing? leon: near-term the valuation is a little bit rich but not to an extent that it prevents the market from going higher. our concern is more over the medium to longer term, we recently put out a long-term assumption, what we call our lo term capital market assumptions and one of the headwinds we see in terms of u.s. equity market return is that over time, over 10 years, we do see valuations needing to normalize but it does not mean they have to do so in the next six or 12 months. paul: so, you do favor the u.s. and japan equity -- at the expense of europe. is that a cyclical story as

well, or is there something else in europe you do not like the look of? leon: europe definitely has a cyclicality but i think one of the concerns about europe is that obviously with negative interest rates, the financial sector is structurally, has a structural problem. we've seen the financial sector rebounds nicely over the last few months because bond yields have risen by given where yield are today we do not expect that much more upside in yields. high yield and negative interest rates we see the financial sector as an anchor on the performance of europe. ex-financials europe can do ok. from the cyclical part of your, they could be, in a farily robust -- fairly robust shape. oure we prefer to do place suppositions elsewhere to paul: in terms of yields i want to get your thoughts on the u.s. bond. -ten flattening again.

is that a trend you expect to see continue? we expect for now to continue to see a slide positive slwow to the yield curve between two and two. not very widespread. ultimately we are late in the cycle. and late in the cycle, the risks are skewed more towards downside on growth and upside. ratesed has cut substantially this year. we have had three rate cuts. we have had some kind of point where the fed will pause. but the 10-year isn't likely, yields aren't likely to continue to fall until the market starts to anticipate a recession which is not in the cards over the next six to 12 months. it's anchored so they can't sell off that much. 10-year will run probably around 170, 160. but the yield spread between two

and ten is likely to continue very small that positive. sophie: thank you so much for setting up markets this monday. leon goldfeld. you get around up in today's edition of "daybreak." this is bloomberg. ♪

sophie: this is "daybreak: asia" i'm sophie kamaruddin in hong kong. paul: i'm paul allen in sydney. johnson unveiled the safety first conservative manus seto as he aims to consolidate ahead of the general election. t to be a year of prosperity and growth. on friday theke 13th of december to find a nightmare on downing street. byn-sturgeon coalition of chaos. i say let's go carbon neutral by orbyn neutral by

christmas. paul: let's cross to david. the conservatives are ahead in the polls. sterling is still range ground against the dollar. any reasons for that. david: there is a couple of reasons. one of them is dollar strength. the dollar index rose again last week. against the background between the trade on usn china. selling perspective it's -- from the sterling perspective, even though they are the head in the polls, conservatives, voters have been burned before. they not change their minds. the markets are saying i want to see this look like a victory. if you look at the latest positioning, it is still are ining that they short sterling about 20,000 contract if you add up the leverage of asset managers.

that compiles 80,000 contract spot about a months earlier. i think a lot of investors are in a wait-and-see before they jump on any potential rally bandwagon. assuming the tories entered winning a majority, what issues may restrict the large sterling value? the markethey win will be happy the uncertainty has been removed. the market will assume a brexit deal will be passed. it moving forward, the market is forward-looking. it is starting to look at how the economic data comes out. you look at retail sales, and that data has been weak lately. that will feed into a charge of boe rate cuts next year. at the moment the markets price and 80% chance of rate cut by august. if the data continues to be weak, that will add to that. theme is the trade negotiations. at the moment deal, a trade deal is supposed to be reached by the end of 2020.

last week at the confederation of british industry, boris johnson says he had no plans to extend that. it is debatable whether a trade deal can be reached in that timeframe. it normally takes three to four years. to get one done within one year could be pushing it a bit. it will nott thinks be reached that will not be sterling positive. if there is a conservative victory, but after that very quickly there is a focus on economic data. now, let's check in on how asian markets are faring this monday so far. we see regional stocks just building on fridays gain, very much in a holding pattern. the yen. the aussie dollar below 69. korean won the strong assist november 20 while the cost be has added 1%. but korean stocks did suffer their worst week after six week of gains that push valuations higher, but that is not dimming

the outlook according to goldman. which has upgraded korean equities to overweight. let's get to su keenan with the first word headlines. su: thank you. we'll start with the u.s. presidential election news. former new york mayor michael bloomberg is joining the crowded race for the white house. entering the democratic campaign with a mix of modern policies and experience in business and government. the 77-year-old launched his bid by saying president trump isn't existential threat to the u.s. and i-- is an existential threat to the u.s. michael bloomberg is the founder and majority owner of bloomberg lp, whose parent company of bloomberg news. to israel. prime minister netanyahu is to face a leadership challenge from within his own party. this as the state prosecutor decides whether to let -- his

opposition form a government and made accusations of corruption. willewspaper says likud hold the primary election within six weeks. israel is still without a government without two inconclusive elections this year. and pro-democracy candidates have taken in early lead and hong kong's district council elections. according to the local media, broadcasting rt hk says the early counts adjust a landslide win for the group. a record number of voters cast their ballot sunday's in their first opportunity to comment after months of protests about greater democracy. and finally, chinese state media says that u.s. is "the biggest a stabilizing element in hong kong." the official news agency says american politicians risk push ing the city in a dangerous abyss as they use the hong kong card to contain china's growth. it comes as president trump deliberates whether to sign a

bill that would require annual reviews of hong kong's special trading status. global news 24 hours a day on air, at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. su.: thanks very much, let's stay with a hong kong election. we are joined by audrey eu, civic party founding leader. audrey, a record turnout for district council elections. now, this deal's really -- deals with local issues but nonetheless a huge turnout in what appears to be a resounding victory for democratic party's. what is your take away from what we saw on the weekend? >> i think first of all it is really the people's victory against the government. or described as a referendum by both sides, the

democrats say this is a referendum against police brutality and also the 's stubbornness. and the proestablishment save this -- says this is a referendum on the protesters side. terms of the violence we have seen, a lot of the discussion over the past few weeks has been well, how do you stop the street protests, the violence, the damage, the vandalism? the as it seems to be you let the people express their will through the ballot boxes. it has been a very peaceful weekend in hong kong. do you think that that might be something that resonates with carrie lam? >> well, actually, yesterday's election was far more peaceful than any i have known in the past. in the past with any election to have some minor arguments and incidents. but yesterday's one was extremely peaceful. ,nd i think to a certain extent

your question can be easily answered. because the protesters have been saying five demands, not one must. and many of the candidates who won in these elections said five demands, no one less. the easiest way to return to some kind of normality is for the people, for the government to really answer or response to the five demands. as it may, wet will see the outcome of the sunday vote translate around those demand? >> they really have to respond. for example, one of the five demands is an independent inquiry into recent events and at least the government has response to that. there is also the demand of universal suffrage. the government least has to say that they are listening and they are really moving fast. because the government still tries to just crack down and

stonewall any of the five demands, well, except the one she has exceeded to which is withdrawing the bill. then i'm afraid that the protests will continue. sophie: earlier we had james thien. he told me that -- how the youth really showed up at the ballot boxes. it will be hard to stonewall that voice going forward. >> a lot of the candidates are very young. many of them have never been in politics and they are just newcomers. they won you use the word landslide and i would rather use the word tsunami. it's actually, the result is pretty phenomenal. so, i think you see a lot of people, i was out canvassing and a lot of people were actually speechless. please help the young people. i think hong kong people really feel for the young protesters. aphie: hong kongers look for

solution to this local crisis and seeking external support and validation, such as the legislation passed by the u.s. congress. thehe legislation passed by u.s. congress is important to hong kong because we really are a very small place. the people really have no weap ons. nothing to resist a crackdown. police, guns, lives rounds, rubber bullets and tear gas. we have nothing to resist that. to a certain extent u.s. sa nctions or global support or global concern to help hong kong a lot. some there were complaints, 6000 complaint around the election, mostly to do with logistics. wwaaiting time. but one candidate spoke out and called the result abnormal. are you aware of any result that

up here at abnormal? -- appeared abnormal? >> that's probably why it was abnormal. he lost. but as i said, in the past, quite often with elections you do have a lot of incidents and reports later on but yesterday's ones were pretty sort of minor compared to the previous occasions. but then there was a huge turnout. so, there we long queues outside all polling stations. i could see one where there was one going uphill. you can well imagine and the sun was shining, blazing. you can well imagine a lot of -- long waits. some people queued for two hours. i can understand were some complaints in that respect as well. sophie: i'd like to bring up something which the former

chinese fights commerce minister had to say regarding the legislation from congress on hong kong. take a listen. u.s. will not intervene in china's domestic affairs with regards to hong kong. we hope president trump does not sign up bill as the bill doesn't reflects the reality in hong kong. it is no good for the future of hong kong and its people. beijinghow then will assess the outcome from the elections on sunday, leading up to legco votes next year in september? >> it is probably too early to speak about the votes next year because also it is a different kind of election because with the district council, -- with legco elections it is proportional representation. it is far more complicated. but i think for the moment. the people have spoken. and we are waiting for the government to respond. so a lot will happen.

a lot will depend on the government response. as far as the comment that the u.s. bill's intervention in hong u.s. pass the all hong kong act because of the joint declaration to give hong kong special ted is because of the -- special status. what we've been seeing in recent years is that there is really we're really moving towards one country, one system. there is a lot of intervention in the elections in particular. basically, you see the hand of the chinese very heavily affecting the result. i'm sure this time they also did that but it is because of the phenomenal turnout rate, 71%, which is totally unprecedented, and that has affected the outco me. paul: in terms of one country, two systems, 2047 was due to mark the end of that arrangement anyway.

what hope is there for universal severed when that date looms deep on the calendar? lawell, actually our basic promises universal suffrage. we have been given a timetable earlier on. it is just that the mpc standing committee then made a decision, which in fact gave us really not genuine universal suffrage but some kind of a process where we will only be allowed to choose the candidates that beijing had preselected. that's not real universal suffrage. so it was turned down by the hong kong legco. this constitutional reform package to be reopened so we can really have real universal suffrage and that had happened long, long before now. that is why you see the young protesters. they are so educated because they are talking about their future and if china is reneging on its promise, what does the future hold?

sophie: certainly a lot of questions after that tsunami we saw at the council elections on sunday. eu.ks so much to audrey we will have much more on the elections. coming up, robbert van der maas joins us to discuss companies pushing to china. this is bloomberg. ♪

paul: this is "daybreak: asia" i'm paul allen in sydney. sophie: i'm sophie kamaruddin in hong kong. artisan hospitality group has a plan to expand and open seven project across mainland china in the next three years. artisan's plan would more than doubled the group's current operations in joining us now is the president robbert van der maas. big ambitions ahead, especially

with the push going into mainland china. given your experience, 30 years in the hospitality industry, what are you seeing going into this market? >> thank you for having me. hospitalityed a to changingcater trends of consumers are china is one of the largest developing countries in terms of its middle-class population and the interest in our industry. we have therefore concentrated our initial focus on china, greater china being shanghai. as the main city as well as singapore. sophie: there have been attempts to mix what offerings hospitality groups provide for the mainland consumer, introducing entertainment. do you hope to expand or you can do to entice customers? >> actually, our company focused ther very much on social and

cultural sustainability and looking at how to create an except inspire local communities that we operate and make it relevant for future generations. sophie: and with that -- >> we do have. paul: you do have six hotels that you are planning in china. you did mention the growing middle class, but china is slowing down. are you concerned about the decelerating growth story there? >> actually, not in the short-term. if you look at the industry as a 4hole, it's currently the a $4 billion industry. we believe in the next 10 years $6will grow to close to $100ion and a -- in a

billion industry. we believe due to consolidation there is a great opportunity for niche players that bring a different perspective a hospitality. -- of hospitality. paul: you have got nine hotels in the planning stage. how are you funding this expansion?? >> most of our new expansion is in the hotel management contracts. holdings we are looking a strategic investments to create a new anchor in those territories. we will start up. as i mentioned earlier we are focused on three basic areas. we'll start from there. and then we will continue. sophie: you are partnering with soe developers in china. with some of the pressures and that space, how are you navigating that? >> well, china is still going through an enormous adjustment. as you know, the society, the economy itself is transferring from an infrastructure led economy to consumption economy. there are significant projects.

we are fortunate to be selected as part of these high profile new projects where was realized that a new project is needed. internationally we see expansion also of travel of the chinese into asia. but also the asian economies to grow substantially themselves. sophie: you are focusing efforts on the premier market in china. will there be eventually a move into a more middle-market segment? >> our biggest growth at the moment is in the upscale as well as the upscale markets. our artisan habitat brent -- b rand has lost her successfully with two hotels. it's also our fastest-growing brand. sophie: thank you so much to robbert van der maas. artisan hospitality group

president joining me and the hong kong studio. you can always find in-depth analysis on bloomberg radio. now broadcasting live from our brand-new studio in hong kong. via the app. bloomberg radio plus or bloomberg radio.com. this is bloomberg. ♪

paul: this is "daybreak: asia" i'm paul allen in sydney. sophie: i'm sophie kamaruddin in

hong kong. a check of the latest business flash headlines. softbank is said to be pursuing its offer for westpac including $1 billion of shares owned by the weworks founder. the coming days will bring a bid of $3 billion worth of weworks shares. we're also told there have been no talks about changing the terms of the offer. paul: fresh air continues to build -- pressure continues to build on westpac that would disqualify directors and . executives breachess accused of of terrorism finance laws and failing to stop transactions into trout abuse. th-- child abuse. it expects $450 million in costs associated with the investigation. sophie: i t's ordered a local unit to pay more than $230

million to the local telecom regulator. the fine is part of a dispute in which the regulator is seeking relatedlion from phones to audit signings between 1997 and 2014. it's contesting the claims calling the report " incorrect." we hand over to bloomberg markets china open, let's have a quick look at how we are trading right now. the risk on tone to start the new week. we have all the major market higher. the nikkei up by .08%. in australia we are better by half of 1%. new zealand recovering from early losses. now stronger. the kospi up 1%. sophie: let's taken on the futures board. we have u.s. stock futures -- up 0.2%. the taiex could be in for gains. as investors have been driving the stocks rally for taiwanese equities for 12 weeks, mastering

-- matching the longest buying streak since 2014. we are seeing downside for futures. the offshore yuan holding below 704, after a second week we drop on friday. paul: well, coming up, we have state street multi-asset strategist ben jones joining us. he will tell us what he sees trade tensions peaking. kong councilor fernando chung.will give us his take. as we look ahead at the start of trade in hong kong, shanghai and shenzhen. sophie: stand by for bloomberg markets, the china open. this is bloomberg. ♪ when it comes to using data, everyone is different.

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>> it is not :00 a.m. in beijing, and singapore. >> we are counting down to the open of the trading week in hong kong and up on the chinese mainland. let's get to your top story today. pro-democracy candidates claim an overwhelming when shared the first vote since the protests began. step up themises to fight against ip theft. it has been a major issue for u.s. negotiators. >> more pressure on westpac as the fallout from money laundering claims widens care to banking and cu